ReutersTata Motors’ luxury car subsidiary, Jaguar Land Rover, is temporarily halting shipments of its British-made vehicles to the United States as it navigates the impact of President Trump’s newly imposed tariffs, according to The Times.
One of Britain’s biggest carmakers is making the move from Monday while it works out how to mitigate the cost of the 25 per cent import tariff that the US president has imposed, The Times report said.
The month-long move is just one of the measures being prepared by the Indian-owned carmaker, which employs 38,000 people in Britain, as it scrambles to assess the damage inflicted on its business from Trump’s trade war. "It is thought that JLR has a couple of months’ supply of cars already in America that have not been subject to the new tariffs. It takes about 21 days to ship vehicles across the Atlantic."
The US government introduced a 25% tariff on imported cars, which went into effect on Thursday. The Jaguar Land Rover move is the latest example of the global fallout from the policy, with other automakers also rethinking their business strategies.
“Our luxury brands have global appeal and our business is resilient, accustomed to changing market conditions,” Jaguar Land Rover said ahead of the tariff implementation in a statement on its website published Wednesday. “Our priorities are now delivering for our clients around the world and addressing these new US trading terms.”
Jaguar Land Rover sold 430,000 vehicles in the 12 months up to March 2024, of which almost a quarter were in North America, according to its latest annual report. In January it reported a 17% drop in quarterly pretax profit.
The carmaker, which was bought from Ford by Tata in 2008, is understood to be weighing up whether it can increase prices for American consumers while looking at ways to beef up sales in other markets outside the US. It could also take steps to save costs by cutting back on marketing and other promotional material.
One of Britain’s biggest carmakers is making the move from Monday while it works out how to mitigate the cost of the 25 per cent import tariff that the US president has imposed, The Times report said.
The month-long move is just one of the measures being prepared by the Indian-owned carmaker, which employs 38,000 people in Britain, as it scrambles to assess the damage inflicted on its business from Trump’s trade war. "It is thought that JLR has a couple of months’ supply of cars already in America that have not been subject to the new tariffs. It takes about 21 days to ship vehicles across the Atlantic."
The US government introduced a 25% tariff on imported cars, which went into effect on Thursday. The Jaguar Land Rover move is the latest example of the global fallout from the policy, with other automakers also rethinking their business strategies.
“Our luxury brands have global appeal and our business is resilient, accustomed to changing market conditions,” Jaguar Land Rover said ahead of the tariff implementation in a statement on its website published Wednesday. “Our priorities are now delivering for our clients around the world and addressing these new US trading terms.”
Jaguar Land Rover sold 430,000 vehicles in the 12 months up to March 2024, of which almost a quarter were in North America, according to its latest annual report. In January it reported a 17% drop in quarterly pretax profit.
The carmaker, which was bought from Ford by Tata in 2008, is understood to be weighing up whether it can increase prices for American consumers while looking at ways to beef up sales in other markets outside the US. It could also take steps to save costs by cutting back on marketing and other promotional material.
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